What are IDV and NCB in Two-Wheeler Insurance?

The NCB increases with each no-claim policy year. The increase in the NCB benefit is generally as follows:

• 2nd Policy Year: 20%
• 3rd Policy Year: 25%
• 4th Policy Year: 35%
• 5th Policy Year: 45%
• 6th Policy Year: 50%

The maximum benefit of NCB is 50%. However, once a claim is raised, the NCB benefit is exhausted.

Note: IRDAI (Insurance Regulatory and Development Authority of India) drafts the NCB for bike insurance to maintain uniformity of benefits!

Things to Know About NCB

Here are a few things that you must know about NCB:

NCB is Transferable

If you choose to change your bike insurance policy or insurance company, the NCB will still remain intact. You can get it transferred to the new policy or insurer.

Maximum 50% Discount

The maximum NCB discount available on bike insurance is 50%. So, from the 6th policy year, you can avail of the 50% discount till the time you raise a claim.

NCB Exhausts With Policy Lapse

It is essential to renew your insurance policy before it expires to continue receiving benefits. However, if your policy lapses and you do not renew it within 90 days, the NCB benefit will also be lost.

NCB Protect

With comprehensive and standalone own-damage bike insurance, you can purchase additional coverages like NCB Protect. This add-on lets you raise a claim without disturbing your no-claim bonus.

Note: Only a limited number of claims can be raised with NCB protection.

What is IDV in Bike Insurance?

IDV stands for Insured Declared Value. It is one of the most important parts of the insurance agreement between the insurance company and the policyholder. IDV is the true value of your bike in the policy agreement. This is the amount that your insurer pays to you if the bike sustains irreparable damage, is stolen, or is lost due to calamities.

During the policy agreement, be sure to discuss IDV in detail with your insurer. It ensures your bike is not undervalued. The IDV, however, is determined based on the model, ex-showroom price, and accessories on the bike, among other factors. When buying insurance, you have the option of increasing or decreasing the IDV of your vehicle.

Things to Know about IDV

When discussing IDV in bike insurance, make sure to keep these things in mind:

Depreciation Cost

Bikes are bound to depreciate over time. Therefore, when calculating the IDV, the depreciation cost of the bike is also taken into account. The depreciation cost for the bike is generally as follows:

• Less than 6 months: 5%
• 6 months to 1 year: 15%
• 1-2 years: 20%
• 2-3 years: 30%
• 3-4 years: 40%
• 4-5 years: 50%

Higher IDV=Higher Premium

The declared value of your bike, as stated by the insured, may have a direct impact on the policy premium. This means that if the IDV is higher, the policy premium is also likely to increase, and vice versa. So, make sure to choose IDV carefully.

IDV Calculator

There are various online IDV calculators that you can use to get an idea of the IDV of your bike. Using these digital tools enables you to make an informed decision during policy agreement negotiations.

Factors That Impact IDV

The IDV of your bike is typically determined based on several factors. These include the age, location, make, variant, and model of the bike. It may also include the type of fuel used for the bike and the policy tenure.

Did you know you can get your bike’s market-fit accessories covered in IDV.

End Words

IDV and NCB are two crucial terminologies in bike insurance. As an informed policyholder and bike owner, it is essential to have a clear understanding of these terms. While purchasing bike insurance, make sure to ask your insurer about these terms and any others that you may not understand.

At Jio Insurance Broking, we make policy comparison easier and quicker. Choosing the right bike insurance with the right IDV becomes an easy task with Jio Insurance Broking. Connect with us to start exploring the right bike insurance for your two-wheeler!